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AN OPEN LETTER TO POTENTIAL INVESTORS FROM PRODUCERS CHAD MARTIN & NICK EVERT
Investment: the outlay of money usually for income or profit The estimated budget for IceBreaker is $30,000. We intend to secure this funding through the generosity of individuals willing to take a chance on a great project. Those willing to contribute to the project will be playing a crucial role in the filmmaking process: without money, there's no film. Any person or persons investing in IceBreaker will receive an Executive Producer credit for their contribution, not to mention the chance to make some money. What exactly does an Executive Producer do? Well, in IceBreaker's case, the job of the Executive Producer is simple - this is the person who makes the film a reality. Plain and simple. Okay, let's pretend that you're just a little curious about this whole Executive Producer thing. You aren't really considering anything just yet; you're just curious. You've got some extra money lying around, and you're thinking about investing it somewhere. There's the stock market, there's real estate, but you'd rather try something a little more interesting - which is why you're reading this right now. But you don't really know anything about the movie business and you're not sure how any of this stuff works. And you really aren't sure why you're even thinking about this, because isn't investing in an independent film a huge risk? Why should you invest your hard-earned money in this project, and what will you get in return? These are all valid questions, and we will now attempt to answer them. Why should I invest my money in this project? Not only is IceBreaker going to be an entertaining film that you'd want to see, it also has the potential to be a financial success. If IceBreaker profits, you profit. Small films like Clerks and Swingers have proven that there's an audience for this type of material, and IceBreaker is similar in tone and structure to both of these films. The same people who are shelling out cash to buy the new 10th Anniversary Clerks DVD are the same people who'd pay money to see our film. That isn't to say that we intend to piggyback on the success of similar films - if IceBreaker is successful, it will be on its own merit. But the success of these similar films proves that an audience exists for this type of movie. Independent film is as popular now as it's ever been. So popular, in fact, that the studio giants in Hollywood have created sub-studios specifically geared towards the distribution of independent films. Fox Searchlight Pictures (a division of 20th Century Fox) is but one example, and there are also successful Hollywood studios like Miramax and Lions Gate Entertainment that thrive on the distribution of independent films. Bottom line: there are distributors out there who are actively looking for independent films like IceBreaker. If our film gets made, it has a chance to get noticed. And if it gets noticed, it has a chance at distribution. For us, distribution means that a lot of people will get to see our movie. For you, distribution means money. How much money am I expected to invest? That's entirely up to you. If we can find one person who will gladly invest $30,000 in our film, then that person gets to be the sole Executive Producer. That person will also get a much bigger slice of the pie if the film were to be successful. However, if we find ten people - each of them willing to put forth $3,000 - that want to invest in our film, then so be it. Our primary concern is raising the $30,000 necessary to shoot the film. Any contribution towards that goal would be appreciated. Okay, so why all this talk about Kevin Smith and Clerks? What does that have to do with IceBreaker? Clerks is an ideal model for IceBreaker for two reasons: 1) the tone and structure of the two films is very similar, and 2) the budgets for the two films are almost identical. For those of you who haven't seen it, Clerks is a dialogue-intensive film shot almost entirely within a convenience store and a video rental store. The film was shot in black and white on 16mm film, and most of the $27,000 budget went towards the cost of film stock, film development and analog sound and editing equipment. We have the luxury of making films in the age of the digital revolution. The cost of shooting and editing a movie digitally are substantially lower than that of film. We will be using this digital technology for IceBreaker, and because of that, we are able to spend more money on other aspects of the filmmaking process. IceBreaker will be a very challenging script for actors, and because of that, we will need to cast the best actors available to us. Considering the amount of work the actors will have to put into this movie, we are committed to providing them with as much monetary compensation as we can afford. Furthermore, our movie will make the use of many more locations than Clerks utilized, not to mention a much larger cast. It is for these reasons that our budget closely resembles the budget of Clerks, even though we are saving much more money by shooting and editing in the digital domain. The primary reason we are modeling our project on Kevin Smith's work is because we believe that the similarities between the two don't stop with the budget. When Clerks was shown at the Sundance Film Festival, it was immediately purchased for $227,000 by Miramax Films. Smith was able to raise $27,000 for his film, and in return he received $200,000 and a filmmaking career. We believe that the same opportunity exists for us. So let's say I invest in this project, and let's say the film is a success. What specifically do I get out of it? That's a reasonable question, and we're confident that you'll be pleased with our deal. If you're willing to go out on a limb and invest money in our project, we believe that we are obligated to be equally generous with you. After all, the movie wouldn't have been possible without your help. Here's "The Deal": (This arrangement applies to all investors involved in the project, but for the sake of simplicity, we'll assume that you are the sole investor.) In the event that IceBreaker is successful and earns a profit, the first monies in go to you until you have recouped 120% of your initial investment. Second monies in go to deferrals, which are fees promised to the cast and crew if the film makes money. After the deferrals are paid, all remaining profits are split between you (the investor) and us (the producers) 50/50. For example, let's say you invest $30,000 in the IceBreaker project. Like Clerks, let's say that IceBreaker premieres at Sundance and gets purchased for $230,000. That's our profit. First monies go to you until you recoup 120% of your investment, so in this scenario, you would receive $36,000. You've already made $6,000 on the movie. Now let's assume that we've set aside $10,000 in deferrals. That $10,000 would be dispersed to the cast and crew. After your initial 120% and the $10,000 in deferrals, we are now left with $184,000. That remaining profit is split between you and us 50/50. You get $92,000 - each of us gets $46,000. Do the math, and you'll see that in the end, you actually make more money than we do. That's the way it should be. You're taking a financial risk in the hopes that you'll make money, and we want to be filmmakers. Under this agreement, you get to make money and we get to make a movie that people will see. Sounds like a pretty sweet setup, and you sound like honest guys, but how I do know that you won't take the money and run if the film makes a profit? You'd be crazy not to ask that question. We have an entertainment attorney that will draw up papers to ensure that our agreement is legally binding. All terms of the agreement will be clearly stated in the document, so you can rest assured that we'll live up to our end of the bargain. What happens if I invest in your film, and it never screens at a festival? Worse yet, what happens if the movie doesn't get made at all? That's where the risk factor comes into play. There are no guarantees on a movie set, that's for sure. There's always a chance that something might go wrong: a lead actor could quit in the middle of shooting, requiring to reshoot everything he's been in so far, which more than likely wouldn't be possible. There are a number of things that could go wrong; there are a number of things that could go our way. With our budget, we are confident that we're providing ourselves with the necessary resources to ensure that the film is completed. But if the production were to fall apart, we'd return to you any money that wasn't already spent. What if you fall behind schedule or are in danger of going over budget? Why all the negativity all of a sudden?! It happens in Hollywood all the time, but again we are confident that we'll do the necessary work during pre-production to ensure that we have enough time and money to finish the film as scheduled. If we were to fall behind schedule and needed more money in order to complete the film, you would not be obligated to provide it. Will I have any creative control during the filmmaking process? You will be allowed to read the screenplay before committing to the project. After all, we can't expect you to jump onboard without having any idea what the movie's about. We don't expect you to invest in a movie if you hate the material. However, the role of the Executive Producer in this project is strictly financial. We the producers will make all creative decisions during the production of the film. We have final cut. Okay, okay. Can I at least be an extra in one of the scenes? Yes! And there you have it. If you have any questions or would like to speak with us further about our film, feel free to contact us. Thanks for your interest in IceBreaker, and hopefully we'll see your name on the big screen! Sincerely, Chad Martin 612-384-0332
Nick Evert 507-319-8014
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